Was Trump Crypto Project, WLFI Just Hit With Security Breach?

World Liberty Financial (WLFI), a crypto project linked to US President Donald Trump and the extended Trump family, including Eric Trump, Donald Trump Jr., and Barron Trump, faced a security breach in September and has recently made it public.

On Wednesday, 19 November 2025,

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Official World Liberty Financial
WLFI

$0.1390


4.82%

Official World Liberty Financial
WLFI


Price

$0.1390

4.82% /24h





Volume in 24h

$65.32M
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–>


Price 7d

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announced via a post on X that it froze some user wallets back in September. According to the released statement, WLFI froze the wallets after “third-party security lapses” exposed users’ secret recovery phrases, which led to phishing attacks.

Importantly, the statement clarified that outside vulnerabilities compromised a “relatively small subset” of wallets and that WLFI’s systems and smart contracts are working fine.

1/ Prior to WLFI’s launch, a relatively small subset of user wallets were compromised via phishing attacks or exposed seed phrases.

Since then, we’ve tested new smart contract logic to safely reallocate user funds and verified users’ identity via KYC checks.

Shortly, users who…

— WLFI (@worldlibertyfi) November 19, 2025

Meanwhile, the crypto-native company is trying to move funds away from the affected wallets to new, safer wallets. However, only those users who pass the security check will get their funds back.

3/ Users who reported compromise were asked to re-complete KYC to confirm identity before providing new wallets.

In parallel, we built and tested new smart contract logic to handle bulk reallocations, ensuring WLFI users remain protected.

— WLFI (@worldlibertyfi) November 19, 2025

The WLFI team also mentioned that it is testing new smart contract features that will aid in better protecting users and staying compliant with regulations during the process.

For now, WLFI has not disclosed the number of wallets or individuals affected, nor the amount of money involved. Furthermore, the compromised wallets remain frozen while the team verifies ownership.

Transfers will once again resume after the checks are completed.

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Senators Call For WLFI Probe: Tokens Found Their Way To Sanctioned Entities

The security breach announcement has come just a few days after US Senators Elizabeth Warren and Jack Reed asked the US Departments of Justice (DOJ) and Treasury to investigate claims that WLFI tokens were sold to sanctioned individuals or groups.

NOW: U.S. senators Elizabeth Warren and Jack Reed are calling for a federal probe into World Liberty Financial, the Trump-linked crypto project.

Their letter urges the DOJ & Treasury to investigate claims that $WLFI token sales were connected to wallets tied to North Korea,… pic.twitter.com/P9mx081Qb5

— Nexus (@Nexus_Epoch) November 19, 2025

Their requests were based on findings by the watchdog group Accountable.US, which allegedly linked WLFI transactions to addresses associated with the North Korean Lazarus Group, a Russian tool designed to dodge sanctions, and an Iranian crypto exchange.

In the Wednesday update, WLFI ignored the allegations.

Meanwhile, several blockchain security experts criticized the Accountable.US report. Taylor Monahan, head of security at MetaMask, and Nick Bax, founder of Ump.eth, argued that the analysis misread token movements and wrongly linked a user to the Lazarus Group.

Another day in crypto with wild allegations. Today, it's that a North Korea-linked address invested in WLFI.

I do a some DPRK crypto research myself, so I decided to take a look at their findings.

They're bad and an innocent user is out $100k because of it pic.twitter.com/yJKEH04nup

— Nick Bax.eth (@bax1337) November 18, 2025

Bax described the report’s conclusions as based on a “funky shitcoin token transfer” and warned that it could lead to innocent users being wrongly flagged. He also noted that one analyst, known as Shryder, may have had around $95,000 worth of WLFI tokens frozen due to what he called a “false positive.”

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WLFI Breach Sparks Debate: Is Its Security Up To Scratch?

WLFI claims that it is moving the funds to new and secure wallets, but only for those who can prove their identity and ownership. This involves creating fresh wallets, transferring assets using updated smart contract code, and confirming user details via KYC (Know Your Customer) protocols.

At the moment, it seems like WLFI is dealing with two problems at once. First, how good is WLFI’s security, and how will it perform as it scales, especially after the security breach in September?

World Liberty Fi executed an emergency function burning 166.667M $WLFI ($22.14M) from compromised address, reallocating to a recovery address.

Function designed for two scenarios:
An investor loses wallet access before vesting OR malicious account acquires WLFI via exploit pic.twitter.com/VSUDWhDPCR

— Emmett Gallic (@emmettgallic) November 19, 2025

Second, successfully prove that WLFI tokens did not end up with sanctioned entities. Failure to do so may result in deeper investigations by the DOJ, Treasury, or OFAC.

The tokens’ close link to the Trump family has already raised eyebrows about potential conflict of interest. Now, after the allegations by Accountable.US and the breach acceptance, regulators are keeping an even closer eye on the WLFI token.

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The post Was Trump Crypto Project, WLFI Just Hit With Security Breach? appeared first on 99Bitcoins.